IRB expects Rs30,000 cr projects in 6 months

IRB expects Rs30,000 cr projects in 6 months

Mumbai: IRB Infrastructure Developers Ltd, engaged in development of roads, has submitted pre-qualification bids for projects worth Rs30,000 crore, a top official said.

“We have applied for pre-qualifications, may not have got the status confirmed from NHAI (National Highways Authority of India) on all of those. But we don’t see a reason why we will not get qualified," chairman and managing director Virendra D. Mhaiskar told Reuters in an interview.

“...We don’t see a reason why we will not get qualified," he said, adding this would be “awarded possibly over the next 6 months".

He expects the NHAI to award 5,000 km of projects worth Rs50,000 crore in the next six months.

As on 31 December, IRB Infrastructure had a total debt of Rs3,800 crore on net worth of around Rs2,400 crore. The company has cash-in-hand of about Rs600 crore.

“With new projects commencing, the debt-roll on those projects would start," he said, adding, debt would rise in the current quarter.

IRB Infra had an order book position of close to Rs9000 crore as on 31 December, he said.

Order flow

“We have seen orders drying up in the last six months for the industry, because we haven’t seen financial bidding happening in the sector."

“Now the sense we are getting is the bidding should commence, so if that commences we have hopes for more orders," Mhaiskar said. Earlier in the day, IRB Infra reported a consolidated net profit of Rs133 crore for Oct-Dec, 45.45% on year.

Mhaiskar attributed the increase in net profits and revenues to orders moving into execution mode, and strong toll-income at Rs214 crore in the third quarter.

The firm did not increase toll rates during the quarter, he said.

The company is expecting sustained growth in toll income for Jan-March quarter, he said, but declined to elaborate.

Shares of the company closed 3.46% lower at Rs213.60 on the Bombay Stock Exchange.